India’s GDP Likely to Grow 6.8-7% in April-June: SBI Report
The Indian economy is expected to witness a significant growth spurt in the first quarter of the current fiscal year (Q1 FY26), driven by higher discretionary spending and demand-led growth. According to a recent report by SBI Research, India’s GDP is likely to grow between 6.8% to 7% in the April-June quarter, indicating a robust start to the fiscal year.
The report, which analyzed various economic indicators and trends, estimates the Q1 FY26 Gross Value Added (GVA) growth at 6.5%, with the gap between real and nominal growth narrowing. This growth momentum is expected to continue throughout the fiscal year, driven by factors such as higher consumer spending, increased investments, and a pickup in economic activity.
One of the key drivers of this growth is expected to be higher discretionary spending, which is likely to drive demand-led growth in the country. As consumers become more confident about the economy and their personal financial situations, they are likely to spend more, leading to increased demand for goods and services. This, in turn, is expected to drive growth across various sectors, including manufacturing, services, and construction.
Another factor contributing to India’s GDP growth is the pickup in economic activity. After a subdued growth phase in the previous fiscal year, the Indian economy has started to show signs of recovery. The slowdown in the previous year was largely due to factors such as the COVID-19 pandemic and the subsequent lockdowns, which had a significant impact on the economy. However, with the pandemic under control and the government’s efforts to revive the economy, the growth momentum is expected to continue.
The report also highlights the importance of investments in driving growth. As the economy grows, businesses are likely to invest more, leading to increased capacity utilization and productivity. This, in turn, is expected to lead to higher employment levels, increased consumer spending, and a self-reinforcing cycle of growth.
India’s GDP growth has been a subject of interest for policymakers and economists alike, as it has a significant impact on the country’s overall economic performance and the well-being of its citizens. The government has been taking various steps to stimulate the economy, including reducing corporate taxes, increasing public spending, and implementing policies to boost exports.
The report by SBI Research is a significant development in this context, as it provides a comprehensive analysis of the Indian economy’s growth prospects. The report highlights the factors driving growth, the challenges that need to be addressed, and the policy implications of the growth momentum.
In conclusion, India’s GDP is likely to grow between 6.8% to 7% in the April-June quarter, driven by higher discretionary spending and demand-led growth. The report by SBI Research provides a bullish outlook for the Indian economy, with growth expected to continue throughout the fiscal year. However, it is essential to remain vigilant and address the challenges that need to be addressed to ensure sustainable and inclusive growth.
Source:
https://investmentguruindia.com/newsdetail/india-s-gdp-likely-to-grow-6-8-7-pc-in-april-june912155
